Breaking Down Lottery.com Inc. (LTRY) Financial Health: Key Insights for Investors

Are you keeping a close watch on Lottery.com Inc. (LTRY) and trying to understand its financial standing? Did you know that as of its 2024 Annual Meeting, shareholders ratified the appointment of Boladale Lawal & Co. as their independent registered public accounting firm for the year ending December 31, 2024? While the company's stock has shown significant momentum, gaining over 82% in the past six months and 185% year-to-date, its Q3 earnings report for 2024 revealed a revenue of just $200.66 thousand, a decrease of -21.92%. With such mixed signals, let's dive deep into the key insights that can help you assess Lottery.com's financial health and make informed investment decisions.

Lottery.com Inc. (LTRY) Revenue Analysis

Understanding Lottery.com Inc.'s (LTRY) revenue streams is crucial for investors seeking to assess the company's financial health and growth potential. A detailed breakdown of revenue sources, growth rates, and segment contributions provides valuable insights.

Primary Revenue Sources:

Lottery.com Inc. operates with the following primary revenue sources:

• B2C Platform: Direct sales to consumers through the Lottery.com app and websites in the U.S. and internationally.
• B2B API: A business-to-business application programming interface that enables commercial partners to resell lottery games in permitted jurisdictions.
• Data Services: Delivery of global lottery data (winning numbers, results), sports data (scores, statistics) to digital subscribers, and access to anonymized transaction data.

Year-over-Year Revenue Growth Rate:

Analyzing historical revenue trends reveals the company's growth trajectory:

• 2023: Annual revenue of $6.99 million, a 3.07% increase year-over-year.
• 2022: Annual revenue of $6.78 million, a -58.69% decrease year-over-year.
• 2021: Annual revenue of $16.41 million, a 119.99% increase year-over-year.
• 2020: Annual revenue of $7.46 million, a 295.23% increase year-over-year.
• 2019: Annual revenue of $1.89 million.

The company's revenue in the last twelve months, up to September 30, 2024, was $6.14 million, representing a 190.77% year-over-year increase.

Revenue Contribution by Business Segments:

Lottery.com Inc. is focused on the following business segments:

• Digital lottery platform
• Sports.com platform

Significant Changes in Revenue Streams:

• Lottery.com is expanding into European and Asian markets, targeting a European lottery market estimated at $118.75 billion in 2024 (expected CAGR of 6.5% from 2025-2030) and an Asian lottery market projected to reach $5.10 billion in 2025 (CAGR of 2.92% from 2025-2029).
• The company is launching Sports.com Studios (SDCS) to produce original sports content, aiming to generate revenue through content licensing, advertising, sponsorships, pay-per-view content, and merchandising, starting in Q3 2025.
• Lottery.com is updating its platform to support ad formats on Sports.com, creating a new revenue stream.
• Acquisition of Spektrum Ltd. for $1.5 million in stock to strengthen proprietary technology and enable international expansion.

Recent news indicates that Lottery.com is actively pursuing strategies to diversify and expand its revenue streams through international expansion, content creation, and strategic acquisitions. These efforts aim to position the company for future growth and increased market share.

See Mission Statement, Vision, & Core Values of Lottery.com Inc. (LTRY). for more insights.

Lottery.com Inc. (LTRY) Profitability Metrics

Analyzing Lottery.com Inc.'s (LTRY) profitability involves examining several key metrics to understand its financial health. Here’s a breakdown of the company's gross profit, operating profit, and net profit margins, along with related factors:

Gross Profit: For the quarter ending September 30, 2024, Lottery.com reported a gross profit of $116,826 [7]. The gross profit for the three months ended September 30, 2024, was $117,000, compared to $213,000 for the three months ended September 30, 2023 [8]. For the fiscal year 2023, the gross profit was $1.32 million, a decrease from $2.47 million in 2022 [3].

Gross Profit Margin: Lottery.com's gross profit margin has seen fluctuations. For the trailing twelve months (TTM), the gross profit margin was 18.90% [9]. The gross profit margin was 7.60% [13, 21].

Operating Income/Loss: Lottery.com has been experiencing operating losses. The operating income for the fiscal year 2023 was -$17.66 million, compared to -$55.87 million in 2022 [4]. The operating loss for the quarter was $3,746,442 [5].

Operating Margin: The operating margin for the TTM period is significantly negative, at -1,808.88% [18].

Net Income/Loss: Lottery.com's net loss for the quarter ending September 2024 was -$8 million [6]. For the fiscal year 2023, the net loss was -$25.74 million, compared to -$60.38 million in 2022 [4].

Net Profit Margin: The net profit margin is also significantly negative. For the TTM, the net profit margin is -365.47% [9].

Trends in Profitability Over Time:

• Gross Profit: Decreasing trend from 2022 to 2023.
• Operating Income: Consistent operating losses.
• Net Income: Significant net losses, although there was a decrease in net loss from 2022 to 2023.

Operational Efficiency:

• Cost Management: The cost of revenue remains high relative to total revenue, impacting gross profit.
• Operating Expenses: High operating expenses contribute to operating losses. In the third quarter of 2024, operating expenses increased to $3,746,442 [5].

Additional Factors:

• Turnaround Efforts: Lottery.com has been undergoing turnaround efforts to address operational and financial challenges [15, 17].
• Strategic Initiatives: The company is focused on relaunching its B2B API platform and resuming its B2C platform operations in early 2025 [5].

Here is a table summarizing key financial figures (in thousands of USD) based on available data:

For further insights into Lottery.com's mission, vision, and core values, you can refer to Mission Statement, Vision, & Core Values of Lottery.com Inc. (LTRY).

Lottery.com Inc. (LTRY) Debt vs. Equity Structure

Understanding how Lottery.com Inc. (LTRY) finances its operations and growth is crucial for investors. This involves analyzing its debt levels, debt-to-equity ratio, and recent financing activities. A balanced approach to debt and equity funding can indicate financial stability and strategic decision-making.

As of the fiscal year 2024, a comprehensive overview of Lottery.com Inc.'s (LTRY) debt levels is essential. This includes:

• An examination of both short-term and long-term debt obligations.
• Analysis of the company's ability to meet its immediate and future financial commitments.

The debt-to-equity ratio is a key metric in assessing Lottery.com Inc.'s (LTRY) financial leverage. It provides insights into how much the company relies on debt versus equity to finance its assets. A comparison of this ratio against industry standards can reveal whether the company's leverage is within a healthy range or poses potential risks.

Recent activities related to debt, such as new issuances, credit ratings, or refinancing efforts, can significantly impact Lottery.com Inc.'s (LTRY) financial health. These events can affect the company's borrowing costs, financial flexibility, and overall risk profile.

Balancing debt financing and equity funding is a strategic decision for Lottery.com Inc. (LTRY). The company must carefully weigh the benefits and risks of each approach to optimize its capital structure and support sustainable growth.

For additional insights into Lottery.com Inc. (LTRY) and its investors, consider reading: Exploring Lottery.com Inc. (LTRY) Investor Profile: Who’s Buying and Why?

Lottery.com Inc. (LTRY) Liquidity and Solvency

Liquidity is a critical aspect of Lottery.com Inc.'s (LTRY) financial health, indicating its ability to meet short-term obligations. Key metrics such as current and quick ratios, working capital trends, and cash flow statements provide insights into the company's liquidity position.

Based on the latest available information, assessing Lottery.com Inc.'s (LTRY) liquidity involves examining several key indicators:

• Current and Quick Ratios: These ratios measure a company's ability to pay off its short-term liabilities with its short-term assets. The current ratio includes all current assets, while the quick ratio excludes inventory, which is generally less liquid.
• Analysis of Working Capital Trends: Working capital, calculated as current assets minus current liabilities, indicates the company's operational liquidity. Monitoring the trends in working capital helps to understand if the company's ability to meet its short-term obligations is improving or deteriorating.
• Cash Flow Statements Overview: Analyzing cash flow from operating, investing, and financing activities provides a comprehensive view of how the company generates and uses cash. Positive operating cash flow is particularly important as it indicates the company's ability to generate cash from its core business operations.

To provide a clear picture of Lottery.com Inc.'s (LTRY) financial standing, here's a hypothetical overview of their cash flow trends based on the fiscal year 2024:

Please note that the above numbers are hypothetical and for illustrative purposes only. To get precise figures, please consult Lottery.com Inc.'s (LTRY) official financial statements.

A thorough analysis of these elements is essential to identify any potential liquidity concerns or strengths, offering investors a clearer understanding of Lottery.com Inc.'s (LTRY) financial stability. For further insights into Lottery.com Inc.'s (LTRY) financial health, you can explore Breaking Down Lottery.com Inc. (LTRY) Financial Health: Key Insights for Investors.

Lottery.com Inc. (LTRY) Valuation Analysis

Assessing whether Lottery.com Inc. (LTRY) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance analysis, and analyst opinions. Let's delve into these aspects to provide a clearer picture for investors.

Currently, comprehensive real-time data for price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios for Lottery.com Inc. (LTRY) is not readily available. These metrics are crucial for comparing LTRY’s valuation against its peers and historical performance. Typically, a lower P/E ratio suggests that a stock might be undervalued, while P/B indicates how much investors are paying for each dollar of the company's net assets. EV/EBITDA offers a view of overall company value relative to its earnings before interest, taxes, depreciation, and amortization.

To evaluate Lottery.com Inc. (LTRY)'s stock price trends, examining its performance over the last 12 months (or longer) is essential. Recent data indicates significant volatility. As of recent updates, the stock has shown considerable fluctuation, reflecting the inherent risks and speculative nature associated with the company's business model. Investors should note these trends to understand the potential for short-term gains versus long-term stability.

Dividend yield and payout ratios are not applicable to Lottery.com Inc. (LTRY), as the company does not currently offer dividends. This is not uncommon for growth-oriented companies that reinvest earnings to fuel expansion rather than distributing profits to shareholders.

Analyst consensus on Lottery.com Inc. (LTRY) stock valuation varies. It is important to consult multiple sources to form a balanced view. Keep in mind that analyst ratings can range from 'buy' to 'sell,' reflecting different expectations about the stock's future performance. Investors should consider these opinions in conjunction with their own research and risk tolerance.

For additional insights into the company's strategic direction, refer to Mission Statement, Vision, & Core Values of Lottery.com Inc. (LTRY).

Considering these factors collectively allows investors to make a more informed decision about Lottery.com Inc. (LTRY)'s valuation. Keep in mind that the absence of certain data points requires a cautious approach, emphasizing the need for continuous monitoring and updated analysis.

Lottery.com Inc. (LTRY) Risk Factors

Lottery.com Inc. (LTRY) faces a variety of risks that could significantly impact its financial health. These risks span internal operational challenges, external market pressures, and regulatory uncertainties.

Here's an overview of some key risk areas:

• Industry Competition: The lottery and gaming industry is highly competitive. Lottery.com Inc. (LTRY) competes with established national and state lotteries, as well as emerging online gaming platforms. Increased competition could lead to decreased market share and reduced profitability.
• Regulatory Changes: The lottery industry is heavily regulated, and changes in regulations could adversely affect Lottery.com Inc.'s (LTRY) operations. This includes potential changes in licensing requirements, advertising restrictions, and taxation policies.
• Market Conditions: Economic downturns or shifts in consumer preferences could reduce demand for lottery products. Additionally, the company's success depends on its ability to adapt to changing technology and consumer behavior in the online gaming market.

Recent earnings reports and filings may highlight specific operational, financial, or strategic risks. These could include:

• Operational Risks: Issues related to technology infrastructure, cybersecurity threats, or the reliability of third-party service providers.
• Financial Risks: Concerns about liquidity, access to capital, or the company's ability to manage its debt obligations.
• Strategic Risks: Challenges in executing the company's business plan, such as difficulties in acquiring new customers or expanding into new markets.

Mitigation strategies or plans, if available, might include:

• Diversifying revenue streams by offering a broader range of gaming products.
• Investing in technology to enhance cybersecurity and improve the user experience.
• Strengthening relationships with regulatory bodies to ensure compliance and navigate regulatory changes effectively.

For more insights into Lottery.com Inc. (LTRY), check out: Exploring Lottery.com Inc. (LTRY) Investor Profile: Who’s Buying and Why?

Lottery.com Inc. (LTRY) Growth Opportunities

For investors eyeing Lottery.com Inc. (LTRY), a clear understanding of its future growth prospects is crucial. Several factors could influence the company's trajectory, ranging from innovative product offerings to strategic market expansions.

Key growth drivers for Lottery.com Inc. (LTRY) may include:

• Product Innovations: Introducing new games or enhancing the user experience on its platform could attract more customers.
• Market Expansion: Entering new geographic markets or partnering with additional retailers can broaden its reach.
• Acquisitions: Strategic acquisitions of complementary businesses or technologies might accelerate growth and diversify revenue streams.

Predicting Lottery.com Inc. (LTRY)'s future revenue and earnings requires careful analysis. While specific projections depend on various assumptions, investors should consider the company's historical performance, current market trends, and management's guidance.

Strategic initiatives and partnerships could significantly impact Lottery.com Inc. (LTRY)'s growth. These may include:

• Technology Partnerships: Collaborating with technology providers to enhance its platform or develop new products.
• Distribution Agreements: Partnering with retailers or other distributors to expand its reach.
• Marketing Campaigns: Implementing effective marketing strategies to increase brand awareness and customer acquisition.

Lottery.com Inc. (LTRY)'s competitive advantages play a vital role in its growth potential. These advantages might include:

• Proprietary Technology: Unique or patented technology that gives it an edge over competitors.
• Brand Recognition: A strong brand that resonates with customers.
• Scalable Platform: A platform that can efficiently handle increasing transaction volumes.

Here's a look at potential competitive advantages for Lottery.com Inc. (LTRY):

For more insights into Lottery.com Inc. (LTRY) and its investors, check out: Exploring Lottery.com Inc. (LTRY) Investor Profile: Who’s Buying and Why?